McDermott has won a contract to transport and install equipment for a carbon capture and storage (CCS) project in East Malaysia.
Malaysia Marine and Heavy Engineering (MMHE) awarded the US company the work on the Kasawari CCS project, offshore Sarawak.
Petronas reached a final investment decision (FID) on the 3.3 million tonne per year Kasawari in November 2022.
McDermott will transport and install a 138 km pipeline section, a 15,000 tonne CCS platform jacket and a bridge, connecting to the existing central processing platform. It will work in water depths of around 108 metres.
“Set to become one of the largest offshore CCS projects in the world, the Kasawari CCS award showcases the valuable role we have in supporting our clients through the energy transition,” said Mahesh Swaminathan, McDermott’s senior vice president, subsea and floating facilities.
McDermott said one of its heavylift and pipelay vessels would carry out the installation, without naming it.
Offshore Bintulu
Petronas awarded engineering, procurement, construction, installation and commissioning (EPCIC) to MMHE in late 2022. The project is based in Block SK316, around 200 km offshore the LNG plant in Bintulu.
Petronas said Kasawari should reduce flaring in the area and would be one of the largest offshore CCS projects in the world.
MMHE carried out the FEED before winning the EPCIC contract. The work also includes a 14,000 tonne topside, MMHE said.
The plan will see Kasawari injecting CO2 into the M1 field, via the McDermott-installed pipeline. MMHE said it expects to start up the work by the end of 2025.
MMHE CEO Pandai Othman, speaking in November 2022, said the contract from Petronas was worth 6.6 billion ringgits ($1.4bn). The contractor awarded compression work on the Kasawari project to Baker Hughes in 2023.
Petra Resources won the hook-up and commissioning works on Kasawari in May last year. The company said the contract would run to December 2025.
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